What is the GE McKinsey Grid?
The GE matrix helps corporations to evaluate their business portfolios and prioritize investments among their diversified units in a systematic manner. It consists of a nine cells that maps the strategic business units of the firm. It builds on two dimensions such as industry attractiveness and business competitive strength with different drivers.
BCG Matrix vs General Electric Matrix
The GE matrix (also known as GE McKinsey Grid) was developed by McKinsey & Company Consulting in the 1970s. Like the BCG matrix, the GE/McKinsey matrix now helps companies make investment and divestment decisions related to their business units. But unlike a BCG matrix with four cells, it has nine. It uses industry attractiveness and business unit strength as the criteria for its measurements.
9 Cells instead of 4 Cells
In General Electric matrix, it expands the 2x2 four-quadrant matrix into a 3x3 nine-square grid.
· Competitive strength is divided into strong, medium and weak;
· Industry attractiveness is divided into high, medium and low.
· In this way, the General Electric matrix has become a nine-square grid.
